Italy Economy Profile 2008

Economy - overview

Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: Italy's official debt remains above 100% of GDP, and the government has found it difficult to bring the budget deficit down to a level that would allow a rapid decrease in that debt. The economy continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in 2008 as the euro-zone and world economies slow.

GDP (purchasing power parity)

$1.8 trillion (2007 est.)

GDP (official exchange rate)

$2.068 trillion (2007 est.)

GDP - real growth rate

1.9% (2007 est.)

GDP - per capita (PPP)

$31,000 (2007 est.)

GDP - composition by sector

agriculture: 1.9%
industry: 28.8%
services: 69.3% (2007 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 2.3%
highest 10%: 26.8% (2000)

Inflation rate (consumer prices)

1.7% (2007 est.)

Investment (gross fixed)

20.6% of GDP (2007 est.)

Labor force

24.86 million (2007 est.)

Labor force - by occupation

agriculture: 5%
industry: 32%
services: 63% (2001)

Unemployment rate

6.7% (2007 est.)

Distribution of family income - Gini index

33 (2005)

Budget

revenues: $976 billion
expenditures: $1.029 trillion (2007 est.)

Public debt

105.6% of GDP (2007 est.)

Industries

tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics

Industrial production growth rate

1.3% (2007 est.)

Electricity - production

278.5 billion kWh (2005)

Electricity - consumption

307.1 billion kWh (2005)

Electricity - exports

1.109 billion kWh (2005)

Electricity - imports

50.26 billion kWh (2005)

Oil - production

164,800 bbl/day (2005 est.)

Oil - consumption

1.732 million bbl/day (2005 est.)

Oil - imports

2.182 million bbl/day (2004)

Oil - exports

521,400 bbl/day (2004)

Oil - proved reserves

621.7 million bbl (1 January 2006 est.)

Natural gas - production

11.49 billion cu m (2005 est.)

Natural gas - consumption

82.64 billion cu m (2005 est.)

Natural gas - exports

379.8 million cu m (2005 est.)

Natural gas - imports

70.45 billion cu m (2005)

Natural gas - proved reserves

217.3 billion cu m (1 January 2006 est.)

Current Account Balance

-$57.94 billion (2007 est.)

Agriculture - products

fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish

Exports

$474.8 billion f.o.b. (2007 est.)

Exports - commodities

engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals

Exports - partners

Germany 13.2%, France 11.7%, US 7.6%, Spain 7.3%, UK 6.1% (2006)

Imports

$483.6 billion f.o.b. (2007 est.)

Imports - commodities

engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco

Imports - partners

Germany 16.7%, France 9.2%, Netherlands 5.6%, China 5.2%, Belgium 4.2%, Spain 4.1% (2006)

Reserves of foreign exchange and gold

$69 billion (31 December 2007 est.)

Debt - external

$2.345 trillion (30 June 2007)

Stock of direct foreign investment - at home

$294.8 billion (2006 est.)

Stock of direct foreign investment - abroad

$375.8 billion (2006 est.)

Market value of publicly traded shares

$798.2 billion (2005)

Economic aid - donor

ODA, $3.641 billion (2006)

Currency (code)

euro (EUR)

Exchange rates

euros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)

Fiscal year

calendar year